Monday, November 17, 2008

Kudos to Goldman Sachs?

Every once in a while there is a story where a company or individual does something really good and they deserve credit for it.

Yes, you read the title correctly. Liberal 17People is giving Goldman Sachs some positive recognition.

Today on the front page of The Wall Street Journal is that rare story where 17People says something nice about Wall Street. That news is that Goldman Sachs, one of the largest investment banks in the world announced that it's top executive will be forgoing their bonuses for 2008.

Now these bonuses aren't like most of us who if we are lucky get an extra paycheck or a few hundred dollars. The CEO of Goldman Sachs got a $70million bonus last year! The next two guys around $68million each. While these numbers are huge you have to credit them for giving up real sacrifice here.

This news comes on the heals of the sickening news that Citi Group is going to layoff
50,000 people in the near future. I wonder if Citi's executives are making the same sacrifice that the Goldman executives are by forgoing their bonuses.

The Journal said around $312billion was paid out in 2007 in Wall Street executive bonuses. So by taking a year to invest that money into their companies,,, would be a way to save jobs and show the public they are serious about change.

If the leadership of more companies take responsible steps like this I think we will be able to bounce out of this economic mess faster than by having executives continue to put their own self interests ahead of their employees.

Despite the fact that I view Goldman as one of the companies who had responsibility in getting us into this financial mess, 17People gives them our highest compliments for this decision.

Their decision does two important things, it shows the public that someone on Wall Street can do something to be responsible and more importantly puts the pressure on other banks to do the same.

How can other investment banks take huge bonuses upon the heals of this stunning example of corporate responsibility? Hopefully it means they can't.

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